Third Quarter 2015 Industrial Market Report

The NAI Alliance Industrial Properties Group has released its Q3 Industrial Market Report.

Overview: 

Our market maintained steady activity during the third quarter. Large deals missing in the first and second quarters reemerged in the third quarter. In addition, three new speculative buildings were completed. On a negative note, two large subleases were added to the market.  The quarter began with a vacancy of 8.7% and ended slightly less at 8.4% so the new activity outweighed the new construction added to the market.  Vacancy changes dramatically when one factors in the sublease space. The second largest building in our market, Kmart’s former distribution facility of 1,557,709sf is now available for sublease. When counting sublease space, overall market vacancy is 11.2%. In summary, market activity continues to be strong.  General sentiment amongst brokers and developers remains highly positive and we anticipate a strong finish to the year.

To continue reading, click her for the Q3 Industrial Market Report. 

Second Quarter 2Q15 Industrial Market Report

The NAI Alliance Industrial Properties Group has released its 2Q15 Industrial Market Report.

Market Summary:

Second quarter was another quarter of strong gross and net absorption.  Boosting numbers this quarter was the roof completion on a large build to suit transaction of 770,650sf for Petco in the Stead area.  This one transaction accounted for 40% of the month’s gross absorption and 72% of the month’s net absorption.  Aside from Petco, the quarter was positive with tenants continuing to slowly absorb existing product.  Another factor skewing numbers this quarter was the addition to market of the KTR speculative 566,875 square-foot facility in the Tahoe Reno Industrial Center.  Adding this property to the available inventory resulted in an increase in vacancy rate despite strong absorption. The quarter began with a vacancy rate of 8.6% and finished with a vacancy of 8.8% (8.7% excluding sublease space).  Depending upon demand, this could continue as more speculative buildings are completed in the third and fourth quarters.

To continue reading, click here for the 2Q15 Industrial Market Report.

Tesla’s gigafactory in Nevada will be essential in the tech company’s plan for a new line of storage batteries

Posted: May 14, 2015

Tesla debuts a new line up of batteries it calls, Tesla Energy.  The batteries include storage solutions for residential, business and utilities.

The Powerwall home battery is one step closer to the promise of easily accessible off-the-grid power. Solar's big weakness is in generating energy during the evenings and cloudy weather, an issue that storage batteries can help remedy.  Just like cellphone technology circumvented and ousted landlines, batteries can eventually replace power lines, according to Musk.

The new Powerwall home battery is priced at $3,000 and $3,500 depending on capacity.

"A normal household can mount this in their garage or the outside wall of their house", Musk said. "It's designed to work with solar systems right off the box."

In addition to their synergy with solar installations, nine Powerwalls also can be stacked together for folks interested in more energy options or want to further reduce their reliance on the grid.  The battery can now be reserved at the Tesla website and the first deliveries are expected to arrive in the summer.

Read the article in its entirety HERE or at www.RJG.com

Follow Jason Hidalgo, Northern Nevada's guru on Tesla, technology, industry and events that shape our economy. 

Video Gaming Tech to Bring More Jobs to Northern Nevada - NAI Alliance

Another story on growth in the area. Always a good topic to write about.

In August, NAI Alliance Office Properties Group of Scott Shanks, SIOR, Dominic Brunetti, CCIM, and Chase Whittemore, MS represented Video Gaming Technologies when they expanded their office space from 9,950 square feet to now close to 18,000 square feet in the NevDex Office Park located at 5390 Kietzke Lane in Reno, Nevada.

Now the company has arrived. With their official grand opening yesterday, VGT, a Tennessee-based gaming technology company, announced that they're ready to continue their growth. More jobs to northern Nevada, more good news. VGT has already brought 40 jobs to the area and have an eye on adding close to 30 more professional positions.

The Company cited the depth of talent in the Reno market was key to their expansion. This is just another in a series of stories of companies who are seeing the value of northern Nevada. We're all in for the revitalization of the area, and signs are pointing towards the positive - new businesses, expanding businesses, job growth.

With the collective help of EDAWN and other organizations, Spring in northern Nevada is happening.

The RGJ published a great article here, and you can see the piece KRNV News 4 did on yesterday's grand opening here.

NAI Alliance Represents Landlord in Deal to Bring Zuvo Water to Northern Nevada

Another step in the right direction for northern Nevada as Zuvo Warter is moving its headquarters to the area. Currently with a staff of 4, the company plans to increase its employee base to 20-25 by the end of the year.

Zuvo is another company that has sprung up and is committed to long-term growth in Nevada. The company is currently in the process of moving its headquarters from Mountain View, CA to the area, and expects to be operational in April.

Michael Nevis, Senior Vice President/Principal of the NAI Alliance Industrial Properties Group, represented the landlord in the transaction - MEPT Southwest Commerce - to get Zuvo into their new space at 895 E. Patriot Boulevard in Reno.

Zuvo Water LLC is a global innovator of chemical-free water products. Zuvo Water’s product portfolio is based on a patented technology platform that reproduces the photo-oxidation process that naturally occurs in the environment.

Multi-Employer Property Trust (MEPT) is an open-end commingled real estate equity fund that invests in a diversified portfolio of institutional-quality real estate assets in the United States. Founded in 1982, MEPT now has over $5.60 billion in net assets and has become one of the largest real estate equity funds in the US.

You can read a detailed article, courtesy of the NNBW, by clicking here. The RGJ also published a story on this news.

Northern Nevada is a Leader in Geothermal Energy Development, But....

There have been a few articles published recently touting Nevada as a geothermal mecca.  In fact, there are 75 geothermal projects under development in Nevada, which is more than twice the amount of the second leading state, California, according to the Northern Nevada Business Weekly (NNBW).

The Great Basin Center for Geothermal Energy at the University of Nevada, Reno has been a leader in understanding the geology of the region covering most of Nevada and parts of Utah, Oregon and California.  The University of Nevada maintains the National Geothermal Academy, an eight-week summer course attended by students, professors, and professionals around the world, both according to the Reno Gazette Journal.

NV Energy currently has 21 deals in place to purchase power from geothermal plants in the state, with a number of those driven by a state requirement for NV Energy to purchase at least 18% of its power needs from renewable sources, according to NNBW. 

However, geothermal energy comes at a price.  Developing geothermal power is a high-risk, high-cost business. Developers spend millions of dollars drilling wells in the hope of finding underground reservoirs of hot water that can be tapped to create steam to drive electricity-generating turbines.

In that sense, the geothermal industry is very much like the oil and gas industries. However, geothermal energy can't be shipped around the world in the way that oil and gas can.  Geothermal energy must be pushed to an electrical grid through agreements to sell the power to a utility and continue development.  Also, there is no payoff in hitting dry geothermal wells, whereas a single "live" oil well can pay off a number of "misses" based on the petroleum prices it can bring.

So, while we have tremendous geological resources here in Nevada, we need investment and legislative commitment to continue our state's growth in this dependable, sustainable source of power.

You can read further, in-depth, pieces by going to the Reno Gazette Journal or the Northern Nevada Business Weekly.

Reno Providing Thought Leadership and Innovation through Local Events

While we all may think of ourselves as outside of the box thinkers, what do we do to truly inspire?  How do we help the collaborative effort?  How do we create our niche as the go-to company? How do we hit targets we may have thought we could never get to?  How do we turn our “small” ideas into something that we know can impact a community, a region, a state, a nation, a world? How?

Well, here in Reno, there has been a groundswell of activity to answer just that question – How?

Starting with the University of Nevada TEDx event January 25, to the Project Vesto competition February 8-10, the Startup Reno Weekend February 22-24, the Reno Hackathon March 2-3, and the latest TEDxReno event announced for April 26, northern Nevada is becoming a think tank for individuals to have a venue to express their creativity in the hopes of developing the next great idea.

These innovative and collaborative forums provide individuals and teams the opportunity to not only get together, but inspire one another.  If we continue down this fostering path, northern Nevada, and our economic development, will continue to ascend.

The benefit to northern Nevada is the growing commitment to helping grow the community with new business ideas, and more importantly new businesses, which will help continue our upward tick regarding the economic issues we are continually rising above.  New ideas, new innovation, new businesses, new education, new jobs.

With education surpassing jobs as a main concern in a survey published by the Retail Association of Nevada and posted on RGJ, the goals of thought leadership, innovation, collaboration, and education are prevalent in the area.  Events and organizations that foster this type of leadership should be commended, as we will all benefit from these efforts in northern Nevada.

NAI Alliance is all in for northern Nevada.  We live here.  We play here.  We work here.  We will grow here.

Work Starts on Southeast Connector in Sparks

This long awaited, and much anticipated, construction work has started.  The SouthEast Connector (SEC) will be a 6 lane arterial roadway with two new at-grade signalized intersections. The new intersections will be at Mira Loma Drive and Pembroke Drive. The SEC will originate at the existing intersection of South Meadows Parkway and Veterans Parkway on the south end and will terminate at the existing intersection of Greg Street and Sparks Boulevard on the north end.

This is very exciting for business and property owners across the region, as a new artery will create a new traffic corridor never before seen in some key regions of northern Nevada.

The article is courtesy of the Reno Gazette.

Northern Nevada Median Household Income Map

An interesting graphic from the U.S. Census Bureau's American Community Survey and the Reno Gazette Journal regarding median household income and demographics in the northern Nevada area.  The Southeast Connector plays right into a great demographic area for the region.  Courtesy of @rgj.

Builders Assoc Forecast 2013 Featuring NAI Recap - by RGJ

Executives from NAI Alliance Commercial Real Estate were lead presenters on the commercial real estate market at the Builders Association of Northern Nevada (BANN) “Forecast 2013 and Beyond” event Tuesday January 15, 2013 at the Atlantis Hotel Casino.

Presenting from NAI Alliance were the following:

• J. Michael Hoeck, SIOR – Senior Vice President/Principal - Industrial Properties Group
• Scott Shanks, SIOR – Senior Vice President/Principal - Office Properties Group
• Mark Keyzers – Senior Vice President/Principal - Retail Properties Group

Expressing cautious optimism, NAI Alliance expects vacancy rates to drop 1 percent for each segment, but still maintain double-digit percentages ranging from 12.3% in industrial and 17.7% in retail spaces.

You can read the full recap article written by the Reno Gazette by clicking here.   

The full presentations can be viewed on the BANN web site by clicking here.